The United States and Taiwan reached a trade agreement on Thursday designed to enhance American semiconductor manufacturing while reducing tariffs. As part of the deal, Taiwan Semiconductor Manufacturing Company (TSMC) has committed to constructing several new facilities in Arizona with an investment of $250 billion from the United States, as stated by the U.S. Department of Commerce. In exchange, the U.S. will lower tariffs on Taiwanese goods from 20% to 15% and offer exemptions for chipmakers such as TSMC that expand their operations within the United States. This treaty complements recent accords with the European Union and Japan.